Stock Futures Stable After Dow, S&P Close At All-Time Highs

U.S. stock index futures were flat overnight Tuesday, after the Dow Jones and S&P 500 closed at record highs after the Senate passed the 1 Trillion dollars.

Futures contracts linked to the Dow Jones Industrial Average were slightly higher. The S&P 500 and Nasdaq 100 futures were stable.

In regular trading, the Dow Jones gained 162.82 points, or 0.46%, while the S&P 500 was up 0.1%. Both hit all-time intraday highs while closing at record highs. The Nasdaq Composite slipped 0.49%, posting its second negative session in the last three. The decline came as treasury bond yields rose, weighing on growth-oriented sectors of the market.

The Senate passed the infrastructure bill on Tuesday, which includes $ 550 billion in new spending for areas such as transportation and the electricity grid. The bill is now heading to the House, although Speaker Nancy Pelosi, D-Calif., Has said she will not introduce it until the Senate passes a budget proposal.

Cyclical areas of the market received a boost during the session, aided both by the passage of the bill and by the rate hike. The energy, materials, industrial and financial sectors all grew by more than 1%.

The march to record highs for stocks comes despite the rise in the number of Covid cases in the United States and around the world.

“Widespread vaccine distribution and distancing measures have helped limit the impact of the variant, but we could still see some drag on economic growth as some restrictions are reintroduced and consumers potentially become more cautious,” said Barry Gilbert, Asset Allocation Strategist at LPL Financial. “While we may see an increase in market volatility due to the Delta variant, we believe the S&P 500 should post even more gains by the end of the year,” he added. .

On the economic data front, the consumer price index for July will be released on Wednesday. Economists polled by Dow Jones expect the index to have risen 0.5% last month, or 5.3% year-over-year. In June, prices jumped 0.9%, the largest monthly increase since August 2008.

The earnings season continues Wednesday with Wendy’s and Canada Goose among the names expected to report ahead of the opening bell. Lordstown Motors, eBay and Bumble are on deck for after-hours closings.

As of Friday, 87% of S&P 500 companies that have released quarterly results have beaten earnings estimates. The same percentage of businesses exceeded revenue estimates during this period.

“There has been a lot to take in recent weeks: big profits, a hawkish Fed and jaw-dropping economic readings,” said Craig Erlam, senior market analyst at Oanda. “Everything seems to indicate that the Fed will reduce its asset purchases in the coming months, with the delta being the only potential obstacle as it spreads into the United States (and many other countries).”